Here’s what Commerzbank’s strategists had to say about Indiathis morning:

Bloomberg News

As the Indian Ministry of Commerce announced yesterday, the country’s gold imports soared by 65% year-on-year in June to $3.12 billion, no doubt because the central bank granted additional import licences to state-owned and private banks and other institutions at the end of May. Although the surge in gold imports in June resulted in a higher trade deficit, it has stabilized in the longer term and contributed to an improvement in the current account. We believe this gives the Indian government scope to ease the import restrictions on gold, even though it chose to leave the restrictions unchanged when it adopted the latest budget last week.

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Great opportunities to lighten up on gold as these events will pass quickly and gold shares will again resume the decline. The rate hike by the Fed is certain and impact on gold shares will be significant.

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